WeWork plans to file for bankruptcy as early as next week, source says
WeWork plans to file for bankruptcy as early as next week, source says
WeWork's filing for bankruptcy would mark a stunning reversal of fortune for the New York-based company that was privately valued at $47 billion in 2019 and a black spot for investor SoftBank that sunk billions.
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Any idea if this is a proper (shut down) bankruptcy, or a get cheaper leases bankruptcy?
It’s a “we paid our execs all our cash” bankruptcy
It's in the article:
New York-based WeWork is considering filing a Chapter 11 petition in New Jersey
And that's the restructuring one? Does that let them escape or decrease their leases?
(Not familiar with American bankruptcy laws(...or any bankruptcy laws))
Yup, 11 is the restructuring one. Very little will happen automatically, but they will try to renegotiate their leases. In a world where big companies are adjusting to WFH being a norm, though no longer the the norm, this has the feeling of pissing on a house fire. When their Chapter 11 restructuring fails, that's when they'll file for Chapter 7 (liquidation)
This is the restructuring one.
https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics